First details announced on Public Sector Decarbonisation Scheme Phase 4

The government has announced details about the upcoming Phase 4 of the Public Sector Decarbonisation Scheme (PSDS).

The £1.17 billion funding allocated for public sector decarbonisation will follow a profile of £670 million in 2025/26, £300m in 2026/27 and £200m in 2027/28.

Up to £335 million for 2025/26 is being awarded in grants for the second year of Phase 3c. Salix is currently allocating this funding and Grant Offer Letters are now being distributed.

While most of the remaining funding will be allocated to Phase 4, a proportion will be allotted to the Trailblazer deals with the Greater Manchester Combined Authority and the West Midlands Combined Authority.

As in Phase 3, applicants will be encouraged to make their own choice as to whether they will want to apply for funding across a single or multiple financial years to deliver their projects.

What is different this time?

One of the biggest differences for Phase 4 will be the grant allocation process.

While applications for Phases 1, 2 and 3 of the scheme have been awarded grants in the order in which they were received, the Department for Energy Security and Net Zero has confirmed that applications received under Phase 4 will be assessed through a targeted allocation process.

According to Salix, this means funding will be allocated towards projects delivering the best value for money with the most direct carbon emission reductions.

The sector cap system, which is set to ensure a proportionate distribution of funds across different sectors of the public estate, will remain in place.

Salix expects to publish the Phase 4 Guidance Notes during summer 2024. These notes will be accompanied by terms and conditions, application walkthrough videos and other information.

More information about this announcement is available on the Salix website.